To know and not to do is to not yet know. In other words, to know there is a risk, for example, and yet not to act upon that risk can leave disastrous holes in your retirement plan, your end-of-life care, or your estate itself. In other words, when it comes to insurance ... ignorance is not bliss.
The kinds of insurances we are “required” to buy help us with the minor bumps and scrapes in life and are sometimes easy to think about, shop for or ensure that we have adequate coverage. Auto and homeowners insurance, for example, come immediately to mind.
On the other hand, disability insurance, long-term care insurance and life insurance are another matter entirely. As USA Today points out in a recent article titled “Insurance is most ignored in financial planning” these three insurances are all too often ignored, misunderstood and difficult to think about emotionally.
Nevertheless, each is often essential.
Insurance is, quite literally, a product you purchase to solve a risk. It is peace of mind.
Without fail, insurance is more cost effective than coping with a disaster. To become disabled, especially late in life, is to lose income that may be necessary for you and your loved ones. Disability insurance can mitigate this.
Likewise, with the rising costs of medical care and seeming inevitability of requiring a good deal of elder care, long-term care insurance can step in when the medical needs are overwhelming.
And finally, life insurance helps eliminate the risk your family faces without you and your income.
Each type of insurance is well worth your consideration, and each can budgeted to fit within a comprehensive financial plan in Overland Park and elsewhere.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: USA Today (November 10, 2013) “Insurance is most ignored in financial planning”